1) On October 5, Wang Company buys merchandise on account from Davis Company. The selling price of the goods is $4,800. On October 8, Wang returns defective goods with a selling price of $650. Both companies use the perpetual inventory system. Record the transactions on the books of Wang Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

2)

Information related to Kerberos Co. is presented below.

1.		On April 8, returned damaged merchandise to Wilkes Company and was granted a $3,000 credit for returned merchandise.
2.		On April 15, paid the amount due to Wilkes Company in full. (Note: On April 5, purchased merchandise from Wilkes Company for $23,000, terms 2/10, net/30, FOB shipping point.)

Prepare the journal entries to record these transactions on the books of Kerberos Co. under a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.	Date	Account Titles and Explanation	Debit	Credit
1.	choose a transaction date April 8April 15	enter an account title	enter a debit amount	enter a credit amount
		enter an account title	enter a debit amount	enter a credit amount
2.	choose a transaction date April 8April 15	enter an account title	enter a debit amount	enter a credit amount
		enter an account title	enter a debit amount	enter a credit amount
		enter an account title	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

Assume that Kerberos Co. paid the balance due to Wilkes Company on May 4 instead of April 15. Prepare the journal entry to record this payment. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount